Spare Revolutionizes Urban Transportation for Disabled Residents, Secures $42M in Funding

Spare fixes cities' outdated transport services for disabled residents | TechCrunch

Cities spend hundreds of millions each year on paratransit services, or public rides for disabled residents, yet those services remain limited and unpredictable. Wheelchair users often face late pickups, hindering them from getting to work or medical appointments on time. As populations age, the strain on these services and city budgets continues to grow. Vancouver-based startup Spare says it can apply modern technology to improve cities' paratransit systems and bring more on-demand services to the mix. Its software-as-a-service platform integrates different types of local transportation services - including wheelchair-accessible paratransit services, local on-demand microtransit operators, and even ride-hail like Uber and Lyft - to match riders with the right service and vehicle operators for their needs. "So if, for example, you have a temporary disability, but you're fine with using an Uber, then maybe instead of sending a big wheelchair-accessible vehicle with a highly trained driver, we can send you an Uber," Kristoffer Vik Hansen, Spare's CEO, told TechCrunch. "You still pay the same cost, but the cost to the transit agency would be much lower. And that's where the secret sauce comes in." Vik Hansen noted that many cities run paratransit services "extremely inefficiently with super legacy technology, like 20 to 30-year-old software," making them "extremely expensive to run." He pointed to New York City's paratransit service as one of the most expensive in the country. In 2023, the MTA spent $517 million on paratransit services in 2023, up from $412 million in 2022. "We started Spare to build an operations system that transit agencies and cities can use to make their own transit systems much better for everyone, whether that's their back office staff, their drivers or their riders," Vik Hansen said. "But also reduce the cost of providing those services." The CEO also noted that Spare's AI uses historical trip data, driver performance and real-time traffic insights from Google to create more efficient routes and allow for more on-demand paratransit services. The startup's main competitor is Via. Since acquiring Remix in 2021, Via expanded from an on-demand microtransit operator to a transit tech company that provides cities and agencies with everything from the backend software to run transit services and rider- and driver-facing applications, to data and planning tools to improve existing systems. By focusing its attention on paratransit, Spare has been able to carve a niche for itself and get its foot in the door of major cities. While Via's software is deployed in 750 cities across 40 countries, according to a Via spokesperson, it offers paratransit integration in only 100 of them. Spare's software is present in over 200 cities in North America, Europe and Japan, including Austin, Dallas, the Bay Area, Stockholm and Osaka. Its focus in those cities is paratransit, but Vik Hansen says Spare also has a thriving microtransit offering and is exploring ways to incorporate non-emergency medical and school transportation services. The company's technology and approach have garnered the attention of investors who want to see Spare scale into new verticals and geographic regions. The company raised a $30 million ($42 million CAD) Series B round led by Inovia Capital, with participation from Kensington Capital and Nicola Wealth, TechCrunch has exclusively learned. "As early supporters from the Series A round, we've seen Spare evolve from a promising startup to a key player in the transit space," Dylan Freeze, director at Kensington Capital, said in a statement. "With this new funding, we're eager to see Spare drive further innovation and empower more transit agencies to deliver flexible, efficient, and modern services."

Spare Secures $42M in Series B Funding to Accelerate Growth in Demand Response Transit Solutions

VANCOUVER, British Columbia, September 10, 2024 (Newswire.com) - Spare, the leading provider of mobility operations software, today announced the successful completion of its Series B funding round, raising $42 million CAD. The funding round was led by Inovia Capital, a longtime partner and lead investor from Spare's Series A. Other previous investors, including Kensington Capital and Nicola Wealth, also participated. This new funding will enable Spare to meet the growing demand for innovative transit solutions, particularly in the paratransit sector. As the population ages, the need for efficient, flexible, and responsive transportation services has never been more critical. Spare's solutions are designed to offer this flexibility and efficiency. The capital will be used to expand Spare's global reach, allowing more agencies to serve their riders better while accelerating the development of its AI-driven platform. "We're incredibly grateful for Inovia's continued support as our lead investor since day one; their guidance has been instrumental in our growth and success," said Spare CEO Kristoffer Vik Hansen. "We're also grateful for the ongoing commitment from Kensington Capital and other strategic investors who have helped push the industry forward. This capital allows us to serve more riders, providing the paratransit community with the great consumer experience they deserve. By harnessing advanced technologies, including Artificial Intelligence, we will further improve efficiency and cost-effectiveness for transit agencies, ultimately enhancing the rider experience, especially for the most vulnerable in our society." "This funding round will accelerate Spare's mission to make transit more accessible by enabling the freedom of mobility," said Hugues Lalancette, Partner at Inovia Capital. "We continue to be impressed with their world-class product and momentum they've built with partners and are confident that this significant investment will help them continue to develop AI-based solutions that meet the evolving needs of transit agencies." Spare has recently announced significant partnerships with transit agencies, including Dallas Area Rapid Transit (DART), Bay Area Rapid Transit (BART) and Alameda-Contra Costa Transit District (AC Transit) in the Bay Area, and GoDurham ACCESS in North Carolina. These agencies use the Spare Platform to power their demand response services, whether ADA-paratransit or microtransit. Spare operates in eight of the 10 largest cities in the United States. One of the pioneering projects in the paratransit sector has been with CapMetro Access in Austin, Texas, where Spare helped modernize and transform its paratransit services from a decades-old legacy system. This collaboration has set a benchmark for similar services across the country, demonstrating the potential of technology to enhance transit accessibility. "Spare has been instrumental in helping CapMetro Access transform our paratransit service, making it more efficient and responsive to our community's needs," said Art Jackson, VP of Demand Response at CapMetro. "Their innovative platform and dedicated support have allowed us to offer a more equitable transit solution, paving the way for future enhancements and expansions." With a strong presence in North America, Europe, and Asia, Spare is the leading provider of demand response transit software. It empowers transit agencies worldwide to deliver efficient, flexible, and responsive transportation services. Focusing on innovation and customer success, Spare's AI-driven platform is transforming the way cities move. "As early supporters from the Series A round, we've seen Spare evolve from a promising startup to a key player in the transit space," said Dylan Freeze, Director at Kensington Capital. With this new funding, we're eager to see Spare drive further innovation and empower more transit agencies to deliver flexible, efficient, and modern services." Spare specializes in providing transit agencies with the technology to modernize ADA-paratransit systems and launch microtransit services. The company focuses on enhancing transportation access for underserved communities, offering a comprehensive suite of software tools tailored to meet each agency's unique requirements. Spare has powered over 15 million rides globally and partners with top agencies such as DART (Dallas), PSTA (Pinellas County), AC Transit/BART (Oakland), CapMetro (Austin), and Winnipeg Transit. For more information, visit www.sparelabs.com. About Inovia Capital Inovia Capital is a venture capital firm that partners with founders to build impactful and enduring global companies. The team leverages an operator-led mindset to provide founders with multi-stage support, mentorship, and access to a worldwide network. Inovia manages over US$2.5B with operations in Montreal, Toronto, Calgary, San Francisco, and London. For more information, visit www.inovia.vc.